Homebuilders report ICE crackdowns driving construction labor shortages

Axios · 8 hours ago
  • Homebuilders in Houston, Richmond, and Jacksonville reported that ICE enforcement is causing labor shortages, higher labor costs, and longer construction cycle times, with Richmond noting a major impact on the ability to start new houses.
  • Immigrants made up more than 26% of the construction workforce in 2024, and the share is far higher in key trades: 57% of drywall and ceiling installers and 53% of roofers.
  • The labor strain compounds rising mortgage rates, building material costs up a median 6.7% year over year, tariff and Iran-war input inflation, and competition for resources with data-center builders.
  • ICE reported arresting 50,925 people in August, the highest single-month total, after three straight months of record arrests.
  • The White House rejects the labor-shortage framing, saying ICE does not arrest people legally in the country and that there is no shortage of American workers.

Quotes

ICE is becoming a very large issue and causing labor shortagesHouston homebuilder
ICE has had significant impacts to vendors throughout Virginia/Maryland in the last 90 days.Richmond, Virginia homebuilder
Current immigration enforcement efforts in our region are causing a strain on both the labor force, labor costs and cycle times.Jacksonville, Florida homebuilder
The comments on 'ICE and immigration' were completely unsolicited.Rick Palacios
Immigration raids discourage legally authorized workers from reporting to job sitesBill Owens
ICE is not arresting people legally in the countryLauren Bis
There is no shortage of American minds and hands to grow our labor force.Lauren Bis

Sources